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Today’s Summary
Monday, April 5th, 2021
Indices: US stocks kicked off the week on a positive note with the Dow Jones Industrial Average advancing 374 points or 1.13%. The S&P 500 and Nasdaq gained 1.44% and 1.67%, respectively. The Russell 2000 underperformed, rising 0.49%.
Sectors: 10 of the 11 sectors closed higher. Consumer Discretionary led, gaining 2.27%. Energy was the only sector to close lower, falling 2.39%.
Commodities: Crude Oil futures dropped 4.33% to $58.79 per barrel. Gold futures were flat and continue to trade at $1,729 per ounce.
Currencies: The US Dollar Index dropped 0.49%.
Interest Rates: The 10-year US Treasury yield rose to 1.706%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Did you see that the weakest stocks in the world are making new 52-week highs?
Here it is Frontier Markets ETF $FM – its exposure is from countries like Kuwait, Vietnam, Nigeria, Kenia.
For me it’s a clearly sign of risk appetite for stocks in general. pic.twitter.com/kQqJ0zMYlc
— R. Alfonso Depablos (@AlfCharts) April 5, 2021
Today’s Chart of the Day was shared on Twitter by Alfonso Depablos (@AlfCharts). It’s a daily candlestick chart of the Frontier Markets ETF, $FM, over the past eight months. Global equity markets can be classified into three groups;
1.) Developed Markets (US, Japan, Germany, France, etc.)
2.) Emerging Markets (China, India, Russia, Brazil, etc.)
3.) Frontier Markets (Kuwait, Vietnam, Nigeria, Kenya, etc.)
Frontier Markets are generally perceived as the riskiest and most aggressive of the three groups, simply because their economies are smaller and less developed. Alfonso points out that Frontier Markets are breaking out to 52-week highs after a three-month pause. This is a healthy sign for Stocks as an entire asset class because it demonstrates risk appetite and broad participation from equity markets around the globe.
Quote of the Day
Skepticism and pessimism aren’t synonymous. Skepticism calls for pessimism when optimism is excessive. But it also calls for optimism when pessimism is excessive.
– Howard Marks
Top Links
The Uptrend Continues – Potomac Fund Management
Dan Russo breaks down the current macro picture and underlines some charts to watch in the weeks ahead.
April Monthly Strategy Session: 3 Key Takeaways – All Star Charts
The team at All Star Charts shares three important charts to watch this month.
Why Growth Stocks Could Rally From Here – Yahoo Finance
Joe Fahmy shares his thoughts on Growth vs. Value.
The Growth-Value Cycle – A Wealth of Common Sense
Ben Carlson examines the Growth/Value cycles over the decades.
Tune Out The Noise – Murphy Charts
Shane Murphy explains why he prefers weekly & monthly charts rather than daily charts.
Top Tweets
Two straight record highs.
Two straight 1% gains.
That’s happened for the S&P 500 only one other time in the past 22 years (in November 2020).
— Callie Cox (@callieabost) April 5, 2021
The S&P 500 is up 6.7% in less than a month pic.twitter.com/RaxHVeKVY2
— Eddy Elfenbein (@EddyElfenbein) April 5, 2021
Energy bleeding today $XLE $TSLA up big pic.twitter.com/M4Duhy6jNr
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) April 5, 2021
Nasdaq-100 weekly view: after holding support in March, looks firmly on its way to new all-time highs. $NDX pic.twitter.com/1ijuwcXEef
— Michael Turvey (@MikeTurvey_TDA) April 5, 2021
Semiconductors approaching prior highs. A breakout would be bullish for tech as well as since semis have been a great leading barometer of the technology sector.$XLK $SMH $SOX pic.twitter.com/C7wnStErPh
— Andrew Thrasher, CMT (@AndrewThrasher) April 5, 2021
Another Relative Strength chart to keep on eye on is Consumer Discretionary vs Staples. Looks like $XLY : $XLP is pointing to more growth in growth. pic.twitter.com/5t0cusHJUF
— Alan Cohen (@al_xdpg) April 5, 2021
$MGV vs $MGK
Just a retest of a breakout or is it more than that? Im open to either, but price will ultimately let me know. pic.twitter.com/0zs4TbmJMF— Pratyush Tulsian (@PrattyCharts) April 5, 2021
#USD This why we are unlikely to get a short squeeze and its been more of a melt up…as traders have slowly been covering pic.twitter.com/q728NrfedH
— ??? (@chigrl) April 5, 2021
Copper vs WTI
One is up over 3% today, one is down over 3% today. pic.twitter.com/VYXVKlT69Q
— Michael Goodwell (@MichaelGoodwell) April 5, 2021
MSFT trades to new all time highs…. pic.twitter.com/DCmfaJvmSX
— Linda Raschke (@LindaRaschke) April 5, 2021
Sure the Dow Theory, formulated in the 19th century, is flashing green.
But is a bull market truly confirmed these days if the U.S, president hasn't yet taken credit for it? pic.twitter.com/6yQXurPNr0
— Michael Santoli (@michaelsantoli) April 5, 2021
You’re all caught up now. Thanks for reading!